The Business Book

78

A L E A D E R I S O N E W H O

K N O W S T H E W A Y ,

G O E S T H E W A Y ,

A N D S H O W S T H E W A Y

EFFECTIVE LEADERSHIP

F

or centuries scholars have

attempted to determine

the definitive styles,

characteristics, and personality

traits of great leaders. Yet, despite

thousands of studies, effective

leadership remains a subject of

debate. However, one common

theme is that effective leadership

requires action, not just intellect.

Leaders cannot simply rely on

charisma. While charismatic

leadership has its place—for

example, Henry Ford was renowned

for his charismatic leadership

style—there is a danger that

rhetoric can exceed reality. Rather

than empowering their employees,

charismatic leaders often

micromanage tasks and prevent

their staff from gaining a sense of

achievement from their work.

Charismatic leaders are often

heralded as champions of

organizational success, but that

charm can be a blessing and

IN CONTEXT

FOCUS

Leadership

KEY DATES

1520s Italian diplomat Niccolò

Macchiavelli’s The Prince

discusses the perils of

leadership in political life.

1916 French executive Henri

Fayol’s work General and

Industrial Management defines

a leader as someone who

“should possess and infuse

into those around him courage

to accept responsibility.”

1950s and 60s The

authoritative “Command and

Control” school of management

becomes popular. Charismatic

leaders dominate organizations

through force of personality.

1980s and 90s Leadership

thinkers, such as US professor

Warren Bennis, encourage

a leadership style based on

integrity, trust, and the ability

to build an organization’s

capacity for change.

Effective leadership

requires action from

the leader, not just

brainpower.

...integrity, trust,

empathy, and

empowerment.

Effective leadership

builds capacity

in others.

A leader’s charisma alone

is not enough. Effective

leadership requires the

establishment of...